{"id":64783,"date":"2022-07-22T17:03:16","date_gmt":"2022-07-22T14:03:16","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=64783"},"modified":"2025-09-06T16:18:50","modified_gmt":"2025-09-06T13:18:50","slug":"binance-denies-using-client-funds-to-earn-profits","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/binance-denies-using-client-funds-to-earn-profits\/","title":{"rendered":"Binance denies using client funds to earn profits"},"content":{"rendered":"<p>The cryptocurrency exchange Binance does not use funds staked in Dogecoin (DOGE) and Litecoin (LTC) to issue loans to third parties or for other profit\u2011driven purposes. The company said this to <a href=\"https:\/\/www.coindesk.com\/markets\/2022\/07\/22\/binance-says-it-does-not-stake-or-lend-locked-doge\/\">CoinDesk<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cLTC and DOGE are not used in on-chain staking, because they are tokens on blockchains with algorithms different from Proof-of-Stake. User funds remain with Binance; we apply a very strict risk-management approach to ensure their safety,\u201d the statement says.<\/p>\n<\/blockquote>\n<p>A company spokesperson also noted that the platform does not use these assets in lending operations, paying interest on deposits from its own treasury.<\/p>\n<p>On July 19, Binance <a href=\"https:\/\/www.binance.com\/en\/support\/announcement\/99b1699ade9c47b08c2da9e4f7b06022\">launched<\/a> the \u201cLocked Staking\u201d program for tokens based on the <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-the-proof-of-work-pow-algorithm\">Proof-of-Work<\/a> consensus algorithm (PoW), which offers annual rewards of up to 3.1% for DOGE and up to 7% for LTC.<\/p>\n<p>Since staking is technically not possible on the Dogecoin and Litecoin networks, some users believed that to pay deposit interest the exchange could use client funds in high-risk strategies, as Celsius Network did.<\/p>\n<p>Some also noted that high deposit yields pose a risk to the platform\u2019s stability, potentially leading to losses for clients\u2019 funds.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">oh boy i can\u2019t wait for 20% returns via totally sustainable magic!<\/p>\n<p>\u2014 Shibetoshi Nakamoto (@BillyM2k) <a href=\"https:\/\/twitter.com\/BillyM2k\/status\/1549447581977038849?ref_src=twsrc%5Etfw\">July 19, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The new program provides for a 120-day lock on assets. Clients may redeem early, but will not receive rewards.<\/p>\n<p>Earlier, the U.S. Securities and Exchange Commission denied reports of an investigation into the BNB token.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news in our <a href=\"\/\/telegram.me\/forklog\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Binance does not use Dogecoin (DOGE) and Litecoin (LTC) staked funds to issue loans or for other profit-driven purposes.<\/p>\n","protected":false},"author":1,"featured_media":64784,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,1166],"class_list":["post-64783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-centralized-exchanges-cex"],"aioseo_notices":[],"amp_enabled":true,"views":"6","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/64783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=64783"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/64783\/revisions"}],"predecessor-version":[{"id":64785,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/64783\/revisions\/64785"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/64784"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=64783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=64783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=64783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}